GE's Immelt would oppose splitting off finance arm

Jeffrey R. Immelt, Chairman and CEO of General Electric, speaks after being honored by the national non-profit group ''A Better Chance'' in New York June 5, 2009.

BOSTON (Reuters) - General Electric Co (GE.N) opposes any regulation that would force it to split off its hefty finance business, the conglomerate's chief executive said in a memo to staff on Monday.

Some investors and analysts have said that the Obama administration's proposed revamping of the U.S. financial regulatory system could force GE to sell or exit its GE Capital unit, which has businesses ranging from leasing commercial aircraft to investing in real estate.

"One proposal in particular, pertaining to the separation of banking and commerce, has led to some media speculation that, if enacted, could require the separation of GE and GE Capital," GE CEO Jeff Immelt said in the memo.

"It is very early in the process, and Congress will now spend months reviewing and drafting legislation. We are certainly opposed to it, since this issue had nothing to do with the financial crisis," said Immelt, who tends to address GE's employees about once a month by memo, according to a spokeswoman. "GE is and will remain committed to GE Capital and we like our strategy."

The Fairfield, Connecticut-based company is already working to scale back GE Capital, which had accounted for half of GE's profit in 2007. Immelt has said he plans to downsize the unit so that in the future the world's largest maker of jet engines and electricity-producing turbines would rely on it for just 30 percent of earnings.

(Reporting by Scott Malone; Editing by Tim Dobbyn)